Why Is Irish Low-Cost Carrier Ryanair Stock Falling Today?

Ryanair Holdings PLC RYAAY shares are trading lower after it disclosed its December data and stated removal from several online travel agents (OTA) websites.

In December, the guest count increased by 9% to 12.54 million, with around 72,500 operated (over 900 flights canceled due to the Gaza/Israel conflict).

On the other hand, the load factor contracted one ppt Y/Y to 91% in December.

On a rolling basis, the guest count grew 13% Y/Y to 181.8 million, and the load factor expanded by 2ppt to 94%.

The company stated that most of the larger OTA Pirates (such as Booking Holdings Inc. BKNG Booking.com, Kiwi, Kayak, etc.) suddenly removed Ryanair's flights from sale on their websites in early December due to pressure from Consumer Protection Agencies or regulatory requirements.

Also Read: Ryanair Caught In Parts Scandal? Unauthorized Components Reportedly Found In Engines

Consequently, Ryanair expects the short-term load factors to reduce by 1% or 2% in Dec and Jan and weaken its short-term yields. 

Ryanair plans to tackle the situation by lowering fares to encourage all passengers to book directly on Ryanair.com.

The airline doesn't expect this event to impact its FY24 traffic or PAT guidance materially.

In November, Ryanair stated FY24 PAT guidance of between €1.85 billion and €2.05 billion, assuming modest losses over the H2 winter period.

Price Action: RYAAY shares are down 3.16% at $125.23 premarket on the last check Wednesday.

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